Why is TT deducting a child tax credit of $500?

[tbudd]

I'm not sure why TT is showing a child tax credit deduction of $500 in the deductions section. I moved to India in April 2021, and had no income after that from US sources for the rest of the year. So I'm not sure why TT is showing this $500 deduction. How do I get rid of this? Or can I just safely ignore it?

[JamesG1]

I would not ignore it.  Is the $500 also reported on line 28 of the 2021 Federal tax return?  View the entry at Tax Tools / Tools / View Tax Summary / Preview my 1040.

Are you reporting a dependent child as a qualifying child on your tax return? 

Did you receive any advance Child Tax Credit payments between July and December of 2021?

Do you mean that your main home is located outside the US for more than six months in 2021?

Please clarify.

[tbudd]

Thanks for the response.

Please find my answers to your queries below.

" Is the $500 also reported on line 28 of the 2021 Federal tax return? "

No. Checked the 1040 form through the tools section on the desktop app.

"Are you reporting a dependent child as a qualifying child on your tax return? "

 Yes

"Did you receive any advance Child Tax Credit payments between July and December of 2021?"

No. Why would that even be the case? Sorry, but I don't understand this child tax credit payment part at all.

I have never, knowingly, received it ever as far as I remember in the last several years.

"Do you mean that your main home is located outside the US for more than six months in 2021?"

That's correct. As I said I moved to India in April 2021, and have been living here since then.

[Vanessa A]

It sounds like you are getting the $500 Other Dependent Credit for your child instead of the child tax credit.  If you look in the Dependent section of your return, you may see a check mark in the box that says Credit for other dependents, if so, then that is what the $500 deduction you are seeing is for. 

You can also look at your 1040 form to see if this appears on line 19 of your 1040 or if it does not, then you can see which line it is on and what it is for. 

You can view your 1040 by clicking the following:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040

[tbudd]

@Vanessa A that's correct. 

I do see the $500 showing up on line 19 of 1040.

How do I fix this now?

[Vanessa A · Accepted solution]

It sounds like you do not need to fix anything. This is the credit for your dependent.  As long as you answered all of the questions accurately, there is nothing to change as you would qualify for it.